Debt Restructuring

When discussing Debt Restructuring, ZFL does not only refer to Law Number 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations, but also addresses debt restructuring through a business-to-business approach.

From a business-to-business perspective, debt restructuring may include, among others: efforts to extend the repayment period of debts (Rescheduling), the transfer of assets owned by the debtor when the debtor is no longer able to fulfill its obligations to its creditors (Debt-to-Asset Swap), and the reclassification of the debtor’s receivables into equity participation due to the debtor’s strong future economic potential (Debt-to-Equity Swap).

We are accustomed to and always open to various debt restructuring schemes from a business perspective, without limiting ourselves to debt settlement through court litigation. This is because the majority of our clients are large corporations built on strong cooperation and trust, who prefer dispute resolution outside the courts in order to avoid disrupting their long-term relationships with business partners.